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Crypto Markets CRASH! Buy the Dip or HODL? 5 Things Investors Should Do

Crypto Market Crash

The crypto market is at a correction stage yet again. The crypto community has witnessed the first crypto market crash of 2022 and it is yet to gauge the reasons to see a change in the bearish course. Though similar to any asset class, the crypto assets are also highly volatile in nature, experts are of the opinion that it might take some time for the market to stabilize. 

While the market is taking its course, it is important to remember that market crashes like these are an occurrence within the crypto space. Though market behavior like this caters toward FOMO within investors, it is also imperative that they keep tabs on market history and follow certain strategies to stay prepared for similar situations. 

Let us take a look at some of the important things that crypto investors should keep in mind during a crypto market crash.

5 Best Ways to Handle a Crypto Market Crash:

  • Resist the Urge to Sell in Panic:  Oftentimes when the volatile crypto market acts up, investors sell the crypto assets in their portfolio. It is better to keep a long-term perspective when it comes to selling your crypto tokens during a ‘crypto market crash’ period.

    Looking back, the crypto ecosystem has already seen a few drastic drops in prices for some crypto tokens. However, they have bounced back in value and have also garnered better yearly percentage growth.
  • Do not Panic Buy: As the experts say, when the crypto market is correcting itself, it is not a smart move to either panic sell or panic buy any crypto assets. Investors should always have a certain amount of INR dedicated to their crypto assets and invest only when they have conducted a thorough DYOR of the crypto tokens.

    While the crypto market crash is highlighting some of the top-performing crypto tokens losing out on value, it also shows some low-value tokens go up in their value and market cap. Nonetheless, investing in any crypto asset should be made once the investor has conducted a thorough analysis and market research.
  • Make use of the Dip: As important as it is to DYOR before investing in a certain crypto asset, it also gives the investor a perspective of what token might have a long-term performance possibility. Given that is the case, small market fluctuations are of use because it provides the opportunity to acquire any token that might have been on an investor’s watchlist. Other than that, it also opens door to investors to acquire more of their favorite crypto tokens!
  • Analyze the market behavior: As known as the crypto market crash periods are to the crypto community, it is also important to understand why the crash has happened and how the market is behaving because of it. Situations like Elon Musk promoting DogeCoin are also an occurrence that may contribute to a crypto market shuffle. Thus, it is important to understand what is causing the crypto market crash.

  • Stick to your Crypto Investment Goals: Experts are always of the opinion that only a certain part of your portfolio should be dedicated to crypto and that segment should be divided into various crypto projects that interest the investor. Making use of the DYOR analysis and following the goals attached to it should be the investing behavior of the investors. 

Additional Read: Why is the Crypto Market Crashing? 6 reasons behind the crypto market crash

Conclusion

A crypto market crash or market correction is a market behavior that comes along with the crypto asset. Taking into consideration that this is the first crypto market crash of 2022, new investors will tend to act out of FOMO. As crypto experts suggest, the volatility of the crypto market requires in-depth analysis to land a conclusion. Understand the reasons behind the crash and invest according to your views. 

If you are new to the crypto space, explore the CoinDCX App to understand the prices and create your watchlist or explore a long-term investing strategy with crypto CIP


Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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